Holley (NYSE:HLLY) Issues Earnings Results, Beats Estimates By $0.08 EPS

Holley (NYSE:HLLY) announced its quarterly earnings data on Wednesday. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.08, FiscalAI reports. Holley had a return on equity of 8.42% and a net margin of 1.68%.The firm had revenue of $172.01 million during the quarter, compared to analysts’ expectations of $172.63 million.

Here are the key takeaways from Holley’s conference call:

• Holley returned to growth in Q2, with net sales up 3.2% to $172 million and core sales up 4.9%; three of four divisions delivered double-digit core growth. Modern Truck & Off-Road, Euro & Import, and Safety & Racing grew 15.7%, 13.1%, and 13.8%, respectively.
• Reported profitability was pressured by tariffs and lower volume, with gross margin down 72 basis points to 41% and adjusted EBITDA margin down 223 basis points to 19.6%. Management said adjusted EBITDA would have been roughly flat year over year excluding a prior-year, non-cash tariff capitalization benefit of approximately $3 million-$3.5 million.
• Free cash flow rose to $40.9 million, leverage fell to 3.74 times, and Holley made an additional $15 million debt repayment after quarter-end, keeping it on track to finish 2026 below 3.5 times leverage. The company also repurchased approximately $2 million of shares during the quarter.
• Management reaffirmed full-year guidance and cited approximately $12 million of new national retailer placements scheduled for Q3, a strong second-half product pipeline, normalized channel inventories, improved marketing execution, and continued contributions from HRX as support for stronger momentum.
• Holley completed the divestiture of its non-core Restoration brands and has now divested four of five targeted businesses, eliminated two facilities, reduced its warehouse footprint by about 95,000 square feet, and removed roughly 7,000 low-margin SKUs. These actions are intended to simplify operations and generate annualized margin and cash-flow benefits, but the divestiture produced a GAAP net loss in Q2.

Holley Price Performance

Shares of HLLY stock traded down $0.04 on Thursday, reaching $3.00. 926,456 shares of the company were exchanged, compared to its average volume of 772,520. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.07 and a current ratio of 3.17. Holley has a 1 year low of $2.33 and a 1 year high of $4.48. The company has a market cap of $364.99 million, a price-to-earnings ratio of 37.56 and a beta of 1.31. The business has a 50-day moving average price of $2.59 and a 200 day moving average price of $3.12.

Holley announced that its board has approved a share repurchase program on Tuesday, May 26th that authorizes the company to buyback $25.00 million in shares. This buyback authorization authorizes the company to reacquire up to 8.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Trading of Holley

Several large investors have recently made changes to their positions in the company. Deutsche Bank AG raised its position in Holley by 7.2% in the fourth quarter. Deutsche Bank AG now owns 48,294 shares of the company’s stock valued at $199,000 after purchasing an additional 3,251 shares during the period. State Street Corp grew its stake in shares of Holley by 0.3% in the fourth quarter. State Street Corp now owns 1,141,534 shares of the company’s stock valued at $4,715,000 after buying an additional 3,788 shares in the last quarter. Verition Fund Management LLC grew its stake in shares of Holley by 10.7% in the fourth quarter. Verition Fund Management LLC now owns 47,831 shares of the company’s stock valued at $198,000 after buying an additional 4,638 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Holley by 16.7% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,542 shares of the company’s stock valued at $65,000 after buying an additional 4,661 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its stake in Holley by 16.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 34,615 shares of the company’s stock worth $143,000 after acquiring an additional 4,767 shares in the last quarter. 39.70% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

HLLY has been the topic of a number of research reports. Weiss Ratings lowered shares of Holley from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, June 17th. Raymond James Financial set a $4.00 target price on Holley in a report on Thursday, May 7th. Wall Street Zen lowered Holley from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Benchmark cut their target price on shares of Holley from $4.50 to $4.00 and set a “buy” rating for the company in a report on Friday, May 8th. Finally, Canaccord Genuity Group reissued a “buy” rating and set a $7.00 price target on shares of Holley in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $4.90.

About Holley

Holley Inc is a designer, manufacturer and marketer of high‐performance automotive products for the enthusiast market. Through its portfolio of well‐known brands, the company develops fuel delivery systems, intake manifolds, ignition components, nitrous oxide systems, digital controls and other engine‐dress accessories tailored to both street and competition applications. Holley’s products are sold through a network of domestic and international distributors, retailers and directly to professional race teams and hobbyists.

The company’s product offerings span mechanical and electronic fuel injection, carburetion, engine management, add‐on power systems and calibration tools.